Playtika finalises Innplay Labs acquisition
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A deal to acquire Innplay for as much as $300.0m (£245.8m/€283.9m) was facilitated earlier this month by Playtika. The final price is anticipated to be far more than the initial €80.0m due to different clauses.
Games like Water Ride, Brix Master, and Animal Kingdom are produced by Innplay Labs, which has been in business since 2019. Vgames, a venture capital firm for video game entrepreneurs, is one of the investors in its brief history.
The purchase, according to Playtika, shows the company's dedication to expanding its mobile gaming portfolio strategically. Playtika paid an initial €81.3 million to acquire Azerion's Youda Games content portfolio last month.
A reputation for executing strategic acquisitions that bring value to shareholders has been created by Playtika since its formation and via its track record of optimising high-growth potential IP, like 'Animals & Coins.'"—Craig Abrahams, president and chief financial officer of Playtika.
Our leadership position in the mobile gaming industry is solidified with the purchase of Innplay Labs. It proves that we are serious about making Israel a centre for innovation and technology on a global scale.
Despite the loss at Rovio, the Playtika M&A continues.
Innplay Labs and the Youda Games portfolio were acquired in a flash following the unsuccessful deal for Rovio Entertainment. The Angry Birds games were created by Rovio.
In November of 2022, Playtika submitted a preliminary proposal; in January of this year, it raised its offer. Robert Antokol, CEO of Playtika, had previously stated that Rovio's shareholders will benefit greatly from the transaction.
Nevertheless, word got out in March that Playtika was pulling their proposal and would not be proceeding with further negotiations. This followed Rovio's strategic assessment, which had already begun in response to bids from Playtika and others.
It was announced in April that Rovio has been acquired by Sega Sammy Holdings for €706.0 million. It outbid Playtika's best offer of €9.05 per share by offering €9.25 per share. Last month, Sega Sammy finalised the purchase.
Huge 340.5% increase in net profit
To what extent Playtika's Q3 performance will be affected by the Youda Games acquisition is unclear. Given that the quarter concludes tomorrow (30 September), it is quite unlikely that the Innplay Labs deal will have any bearing.
The second quarter was a bit of a mixed bag for Playtika. For the quarter ending June 30th, revenue was $642.8 million, a decline of 2.5% year over year.
Although revenue from casual games increased by 3.7% and from Blitz Bingo by 6.3%, revenue from social casino games fell by 9.9%. There was a 3.2% rise in average payer conversion despite a 1.0% decline in average daily paying consumers to 307,000.
Comprehensive net profit, on the other hand, soared 340.5% to $90.3m, thanks to the lowered expenses. Also, the quarter's adjusted EBITDA increased 6.7% to $215.0m.
